Gold Prices Surge as ISM PMI Fails to Meet Expectations

The gold market is gaining momentum as the US service sector shows signs of slowing down. The Institute for Supply Management (ISM) reported that its Services Purchasing Managers Index (PMI) rose to 54.1 in July, which is relatively unchanged from June's reading.

This figure was weaker than economists' expectations, who had forecasted a reading of around 54.5. Despite the slight increase, the report showed that thirteen industries reported growth, one fewer than in June, while four reported contraction, matching June's total.

The gold market is responding positively to this news, with spot gold trading at $4,225.80 an ounce, up 3.65% on the day. This marks a six-week high for gold prices.